Apr. 16--First-quarter profit at Genuine Parts Co. dived 28 percent as all four of the Atlanta conglomerate's businesses were hurt by the sagging economy.

Genuine Parts reported profit of $89.2 million, or 56 cents per share, compared with $123.5 million, or 75 cents per share, in the year-ago quarter.

Despite the profit slide, the company managed to beat Wall Street's expectations of 49 cents per share. That explained why Genuine Parts' shares rose nearly 10 percent Thursday to close at $34.50 per share on day when the broader markets rose.

"It was a challenging quarter for us, as the effects of the slower economy impacted each of our four business segments," said Thomas C. Gallagher, Genuine Parts' chairman and chief executive, in a statement.

The company's automotive group, which includes the NAPA auto parts stores, and S.P. Richards, its office products unit, each reported a seven percent sales decrease. Sales at Motion Industries, its industrial division, fell 16 percent, while EIS, the electrical business, saw the steepest decline, 25 percent.

"While we are not pleased with our first quarter operating results, the balance sheet at March 31 remains in excellent condition and we continue to strengthen our financial position through working capital and asset management initiatives, as well as steady and strong cash flows," Gallagher said. "We believe the use of our cash in several key areas, such as the dividend, opportunistic share repurchases, the ongoing investment in each of our businesses and strategic complimentary types of acquisitions, serves to maximize the total return to shareholders."

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